Margin Trading Costs: What You Really Pay to Borrow for Stocks and Crypto

When you trade on margin trading costs, the fees and interest you pay when borrowing money from your broker to buy stocks, ETFs, or crypto. Also known as leveraged trading, it lets you control more assets than your cash balance allows—but every dollar you borrow comes with a price. It’s not just about the interest rate. There’s the margin interest rates, the daily charge brokers apply to borrowed funds, often tied to the prime rate plus a markup, plus potential margin call risks, when your account value drops too low and you’re forced to deposit more cash or sell positions. And if you’re trading crypto or volatile stocks, those risks spike fast.

Most brokers advertise low rates—like 5% or 6%—but those are for large balances. If you’re borrowing $2,000, you might pay 10% or more. And it’s charged daily, not annually. That means even a small position can rack up $1–$3 in fees every week. Add in overnight financing for crypto positions, and you’re paying more than you realize. Some platforms hide these costs in fine print, while others charge extra for margin access or impose minimum balance requirements just to qualify. Meanwhile, broker margin requirements, the minimum equity you must keep in your account to avoid a forced sale can shift overnight, especially during market swings. One bad day and you’re scrambling to add cash—or losing positions you didn’t plan to sell.

What makes this even trickier is that margin doesn’t just amplify gains—it amplifies losses too. A 10% drop in your stock can turn into a 20% loss if you’re trading with 2x leverage. And if you’re using margin to chase crypto pumps, you’re playing with fire. The posts below break down exactly what you’re paying, who charges what, and how to spot the hidden traps. You’ll see real examples from traders who thought they were saving money—until the fees added up. No fluff. Just what you need to know before you borrow another dollar.